INTERNATIONAL TRADE COMPLIANCE PROGRAM at GE

Transcription

1 INTERNATIONAL TRADE COMPLIANCE PROGRAM at GE Yi Jiang, Trade Compliance Manager, APAC General Electric Company. 26 th ASIAN EXPORT CONTROL SEMINAR, Feb 26-28, 2019, Tokyo, Japan

2 The organization structure - ITC COE ITC COE works for the GE businesses to make international trade compliance simpler. Provide guidance, advice and expert solutions, and information about the governments export control laws and regulations.. 2

3 ITC focal network Serve as site s primary point of contact for export control matters Disseminate Corporate ITC alerts and updates to local site employees Resolve less complex local site s export control matters Participate in relevant ITC training and seminars 3

4 INTERNATIONAL TRADE COMPLIANCE (ITC) Key Policy Requirements Commitment to compliance with all applicable international trade compliance laws Each GE business is required to implement an export compliance program 4

5 5 Company-wide Export Controls Enterprise Standard Primary authority on the establishment and management of GE s internal export compliance program Ensures proper export decisions are made consistently, and that responsibilities are clear Minimizes the risks of non-compliance INFRASTRUCTURE MANAGING KEY RISKS EXPORT LICENSING EXPORT MONITORING 5

6 Program focus: The 5Ws Will? Anti-boycott Controls What? Product/ Technology Controls Why? End Use Controls GE s Export Profile High-tech products Distributor model Military items & customers Global sales Where? Destination Controls Who? End User Controls 6

7 1 WHAT is being exported? Product / Technology Controls: Is the item dual use, or specially-designed or modified for military / defense use? Classifying / Tagging the item under the proper export classification is the baseline for export control compliance! Export classifications are set by our engineering team or their designees. Export classification determines the rules of the road for export purposes. Even low-tech, older products or technology may be controlled. 7

8 CLASSIFICATION key takeaways Classify all products, software and technology Require suppliers to provide ECN or product information Submit request to ETRB/Gov t to classify items and technology 8

9 12 WHY is the end user seeking the item? End Use Controls: Will the item be used in a way that poses national security concerns? Catch-all controls. End use activities related to chemical, biological or nuclear weapons, even if items are not listed in control list. US China Military Rule. Certain dual-use products cannot be sold for military end use in some countries. Risks of diversion. PERFORM DUE DILIGENCE. REVIEW RED FLAGS. 9

10 The vast majority of activities are legitimate. However there are those who attempt to purchase or divert controlled goods and technologies to WMD or military programs of concern. ALERT! If you find yourself in any of these situations, you may be dealing with an illegal strategic goods transaction. You are approached by a customer whose identity is not clear. The consignee of end-user is found on designated lists. The customer is reluctant to provide end-use or enduser information. The product s capabilities do not fit the buyer s line of business. The customer declined routine installation, training or maintenance services. More, click here. 10

11 CATCH-ALL CONTROLS key takeaways Secure signed end user statements or affidavits Perform due diligence Review all red or warning flags 11

12 31 WHO will be receiving the export? End User Controls: Does the person or entity who will receive the item pose national security concerns? Is this an end user that GE is familiar with? Is the end user involved in any military or WMD activities? We must screen all known parties to a transaction 12

13 Which lists do we screen against? BIS List: Denied Persons List, Entity List, Unverified List EU Consolidated List Interpol METI (Japan) MAS (Singapore) OFAC Specially Designated Nationals UN Consolidated List FBI Most Wanted These are a sample of the baseline lists 13

14 Who do we screen? Customers Suppliers Distributors Re-sellers Employees Contractors Retirees Shareholders Business Partners Visitors to sensitive facilities End Users Freight Forwarders 14

15 When do we screen? Initiation of relationship Quotation / Order entry Before shipment Before payment Upon payment receipt Periodic batch screening Timing of screening is critical 15

16 SCREENING key takeaways Screen all known parties to the transaction Timing of screening is critical, conduct rescreening when necessary Use an automated screening tool 16

17 4 WHERE is the item being exported? Destination Controls: Is the product destined for a country that poses national security concerns? U.S. embargo and sanctions programs. GE State Sponsor of Terrorism Policy prohibits business by any GE entity with Iran, Syria, Cuba and North Korea unless authorized by a US Government license Policy applies to all entities (US and non US) owned or controlled by GE Policy applies to direct and indirect transactions Potential diversion / re-export to an embargoed country. Higher risk when selling to certain countries and regions! 17

18 SANCTIONS REVIEW key takeaways Check if US jurisdiction applies Review sanctions regulations Perform due diligence 18

19 513 WILL the export violate the U.S. anti-boycott laws? Anti-boycott Controls: Do the terms of the transaction support a boycott that violates U.S. foreign policy objectives? Arab Boycott of Israel, Pakistan & India GE Centralized review and clearance We cannot proceed with any transaction containing potential boycott language until it has been reviewed by Legal! 19

20 Recognizing a boycott request Sample Boycott-related Language No import shall be permissible from Israel or of goods originating from Israel The SELLER shall declare that the GOODS delivered are not supplied nor manufactured by either a company or one of the subsidiaries/ branches who are blacklisted by the Arab Boycott of Israel. The GOODS shall not contain any components of Israeli origin The carrying vessel may not be an Israeli flag All potential boycott language must be reported through the Support Central Boycott Workflow, click HERE to access the workflow. 20

21 ITC COE website - One place to get help across all of GE! ITC COE Website Click here! 21

22 Training materials Click HERE to access the training materials Overview Introduction Advanced fundamentals Function Specific Engineering Commercial Logistics, etc. Subject Specific Antiboycott Sanctions Watchlist screening Other Business specific Regional External 22

23 Thank you! ありがとうございます! 谢谢! GE ITC COE 23